- DraftKings to integrate products across ESPN’s ecosystem
- New agreement more ‘lucrative’ for Disney-owned sports network
- Penn had struck ten-year US$1.5bn deal with ESPN in August 2023
ESPN has ended its betting relationship with Penn Entertainment and struck a new sportsbook partnership with DraftKings in a significant overhaul of its gaming strategy.
The Disney-owned sports broadcaster agreed to a ten-year US$1.5 billion deal to license its brand to Penn’s sportsbook and promote it across its programming and digital channels back in 2023.
However, ESPN Bet struggled to meet expectations and secure market share in a market dominated by DraftKings and FanDuel. The two sides have agreed to mutually end the partnership after just two years and pursue alternative strategies.
“When we first announced our partnership with ESPN, both sides made it clear that we expected to compete for a podium position in the space,” said Jay Snowden, chief executive of Penn Entertainment. “Although we made significant progress in improving our product offering and building a cohesive ecosystem with ESPN, we have mutually and amicably agreed to wind down our collaboration.”
Penn will rebrand ESPN Bet as ‘theScore Bet’ after the Canadian sports media company it acquired in 2021 and will remain an ESPN advertising client.
“Together, ESPN and Penn created a truly unique offering with unparalleled integrations across our various media assets,” said ESPN chairman Jimmy Pitaro. “ESPN drove over 2.9 million new users into the Penn ecosystem, with a strong uptick in first time bettors this fall. We appreciate the collaboration we had with Penn.”
DraftKings will become ESPN’s exclusive official sportsbook and odds provider, with ESPN Bet becoming a content brand. DraftKings’ products including betting, daily fantasy, and peer-to-peer games, integrated across the broadcaster’s portfolio, while it will receive exposure via ESPN’s betting programming and social and digital channels.
The Hollywood Reporter (THR) says the tie-up with DraftKings is more lucrative than its previous arrangement and that the change in partner was not caused by the gambling scandal that has engulfed the National Basketball Association (NBA).
“Our betting approach has focused on offering an integrated experience within our products,” said Pitaro. “Working with DraftKings, a leader in the space, will allow us to build upon that foundation, continue to super-serve passionate sports fans and grow our ESPN direct-to-consumer business. We are excited about this new collaboration with DraftKings.”
“ESPN’s unmatched visibility across the world of sports make this collaboration a natural fit,” said Jason Robins, DraftKings chief executive and co-founder. “As an innovative leader in digital sports entertainment, DraftKings is uniquely positioned to integrate our technology and products with ESPN’s iconic brand and storytelling power.
“Together, we’re delivering a seamless, engaging, and responsible experience that elevates how fans connect with live sports.”
‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source www.sportspro.com ’
